Zhongyuan Securities·2025-11-19 10:27Core Insights - The report emphasizes a high level of policy support and an unexpected surge in energy storage demand within the lithium battery industry, indicating a strong investment strategy for the sector [1][4]. Group 1: Performance and Market Review - The lithium battery sector has shown a significant recovery, outperforming the CSI 300 index, with a revenue growth of 0.14% and a net profit decline of 30.70% in 2024. In the first three quarters of 2025, revenue and net profit grew by 12.81% and 28.38%, respectively, with a notable increase in the lithium battery index by 79.34% [7][12][27]. - The demand for power batteries continues to grow, with global sales of new energy passenger vehicles reaching 14.4786 million units in 2025, a year-on-year increase of 23.47%. The total installed capacity of power batteries reached 811.8 GWh, up 34.70% year-on-year [7][30][33]. - The performance of the lithium battery sector is expected to continue growing, with China's market share in the global top 10 power battery companies at 68.2% and over 90% in energy storage. The overall price trend of raw materials is expected to stabilize and rise moderately [7][29][30]. Group 2: New Energy Vehicle Sales - Global sales of new energy vehicles are projected to reach 17.2416 million units in 2024, a 25.98% increase, with a market share of 22% [30][34]. - In China, new energy vehicle sales reached 12.859 million units in 2024, a 36.10% increase, with a market share of 40.92% [34][35]. - The export of new energy vehicles from China has seen significant growth, with exports reaching 5.859 million units in 2024, a 19.33% increase [41][49]. Group 3: Investment Ratings and Main Lines - The report maintains a "stronger than market" rating for the lithium battery sector, with current valuations significantly below the historical median level since 2013. It suggests focusing on four main investment lines: leading companies in the industry, companies benefiting from energy storage demand, sectors experiencing price increases, and advancements in solid-state battery technology [7][9][29].